Medicare Advantage continues to grow, but new enrollment data reveals an important shift: traditional Medicare Advantage plans are barely growing, while Special Needs Plans (SNPs) account for nearly all the gains.
According to the Centers for Medicare & Medicaid Services (CMS), Medicare Advantage enrollment reached 36 million members in October 2026, an increase of approximately 907,000 beneficiaries, or 2.6%, compared to October 2025.
But the more significant story is where that growth is happening.
An analysis of CMS enrollment data published by Health and Tech Now found that approximately 85% of net Medicare Advantage enrollment growth came from Special Needs Plans. Enrollment in other Medicare Advantage plans increased by just 0.5%.
For independent insurance agents, these numbers highlight a changing marketplace and the importance of understanding where opportunities are emerging.
CMS enrollment data from October 2025 and October 2026 shows a clear difference between the growth of Special Needs Plans and other Medicare Advantage products.
| Enrollment Category | October 2026 | Annual Growth |
|---|---|---|
| Total Medicare Advantage | 36.02 million | +2.6% |
| Special Needs Plans (SNPs) | 8.48 million | +10.0% |
| Other Medicare Advantage Plans | 27.54 million | +0.5% |
| Standalone Part D Plans | 25.48 million | +8.2% |
Source: CMS Monthly Contract and Enrollment Summary Reports, October 2025 and October 2026; calculations reported by Health and Tech Now.
Of the approximately 907,000 net new Medicare Advantage members added over the past year, nearly 775,000 were enrolled in Special Needs Plans.
That means SNPs accounted for roughly 85% of the market's net enrollment growth, while other Medicare Advantage plans collectively added only about 132,000 members.
This does not mean traditional Medicare Advantage is disappearing. More than 27 million beneficiaries remain enrolled in non-SNP Medicare Advantage products.
However, it suggests that the next phase of industry growth may look very different from the previous decade.
Special Needs Plans are designed for Medicare beneficiaries who meet specific eligibility requirements. Three primary categories serve different populations:
The shift toward these products is not new, but the pace of growth is increasingly difficult to ignore.
A June 2026 KFF analysis found that SNPs accounted for 85% of the net increase in Medicare Advantage enrollment between 2025 and 2026, compared with 48% in the preceding year.
KFF also reported:
Together, these findings reinforce an important trend: Medicare Advantage growth is becoming increasingly concentrated among beneficiaries with specialized healthcare needs.
While overall enrollment remains substantial, growth in non-SNP Medicare Advantage plans has slowed considerably.
At the same time, insurers are adjusting their 2027 plan portfolios, reducing certain offerings and becoming more selective about the markets they serve.
As discussed in PSM Brokerage's recent analysis, 2027 Medicare Advantage Market: Fewer Plans, Shifting Competition, and New Opportunities, the 2027 landscape includes:
These changes suggest carriers are making more deliberate decisions about product availability, geographic coverage, and the populations they intend to serve.
For agents, the practical takeaway is straightforward: A large Medicare Advantage client base does not guarantee that the same plans, benefits, or carrier options will remain available year after year.
Annual coverage reviews and carrier diversification are becoming increasingly important.
Another noteworthy development is the increase in standalone Medicare Part D enrollment.
CMS reported approximately 25.5 million standalone Part D enrollees in October 2026, an increase of 8.2% compared with the previous year.
At first glance, this could suggest a growing opportunity among beneficiaries using Original Medicare.
However, the numbers require additional context.
According to KFF's analysis of 2026 Medicare Part D enrollment, a significant portion of standalone PDP growth resulted from changes in employer and union retiree coverage arrangements.
Some employers have shifted prescription drug coverage from Medicare Advantage prescription drug plans into separate standalone Part D plans.
The takeaway for agents: Standalone Part D growth is worth monitoring, but it should not be interpreted as direct evidence of equivalent growth in individual Medicare Supplement enrollment.
Still, maintaining a diversified portfolio that includes Medicare Supplement and Part D products allows agents to address a broader range of coverage needs.
The latest enrollment data highlights several opportunities for agents planning beyond the current Annual Enrollment Period.
With SNPs accounting for most Medicare Advantage enrollment growth, agents should evaluate the D-SNP and C-SNP products available in their local markets.
That includes understanding eligibility requirements, qualifying chronic conditions, provider networks, Medicaid coordination, applicable enrollment periods, and carrier-specific certification requirements.
SNPs can represent an important opportunity to serve eligible beneficiaries, but they require specialized product knowledge and careful compliance practices.
Agents who rely exclusively on general-enrollment Medicare Advantage products may be more exposed to carrier exits, plan reductions, and changing commission structures.
Building a broader portfolio that includes Medicare Supplement, Part D, and appropriate supplemental insurance products can help agents serve clients whose needs or coverage options change over time.
Diversification is not about recommending more products. It is about being prepared with appropriate options when clients need them.
As insurers adjust their product portfolios, existing Medicare Advantage beneficiaries may face changes to benefits, premiums, provider networks, prescription coverage, or plan availability.
These developments create an important opportunity for proactive annual reviews.
Agents should confirm that each client's coverage continues to align with their healthcare needs and financial situation.
For additional guidance, see PSM Brokerage's 2027 Medicare Advantage and Part D Star Ratings analysis.
National enrollment trends provide valuable perspective, but Medicare Advantage remains a highly localized business.
A carrier expanding nationally may still exit individual counties. Likewise, SNP growth in one region may not translate into the same opportunities elsewhere.
Agents should regularly review local plan availability, enrollment trends, carrier changes, and the needs of the beneficiaries they serve.
Medicare Advantage has surpassed 36 million members, and it remains a major part of the Medicare marketplace.
But the latest enrollment data makes one thing clear: The majority of growth is no longer coming from traditional Medicare Advantage products.
Special Needs Plans are accounting for a disproportionate share of new enrollment, while other Medicare Advantage plans are experiencing much slower growth.
For independent insurance agents, this is not necessarily a reason to move away from Medicare Advantage. It is a reason to think more broadly about the business.
Understanding SNPs, maintaining a diversified product portfolio, and strengthening client retention strategies can help agents remain competitive as the marketplace evolves.
The agents best positioned for the next phase of Medicare growth will be those who understand the entire Medicare landscape, not just one segment of it.
At PSM Brokerage, we help independent insurance agents navigate a changing marketplace through carrier access, dedicated account management, training, marketing resources, and enrollment technology.
Whether you're expanding into Special Needs Plans, strengthening your Medicare Supplement business, or diversifying your product portfolio, our team can help you identify opportunities that fit your business.
Connect with PSM Brokerage and explore your opportunities for growth.